The rupee, which has been on an upward trend for more than a week now, continued strengthening against the dollar in the interbank market on Friday.
By 10:05am, the local currency had gained Rs2.15 against the dollar to reach Rs224, up 0.95 per cent from yesterday’s close of Rs226.15.
Saad bin Naseer, director of Mettis Global, a web-based financial data and analytics portal, said the PKR was stable today because inflows are in the pipeline — export proceeds and remittances are being deposited — and there is no panic in the interbank.
He said, however, that the government needed to look into the “huge game” the money changers were playing as they were causing problems and losses for the common people.
“When the rupee was falling to 240 in the interbank, money changers were selling dollars at 250-255 in the open market. Today, money changers are buying dollars at 210/215 and selling it in government Nostros for 225/226,” he said.
Naseer said the rupee would strengthen further in the coming days on the back of more inflows.
The rupee had been on a consistent decline from July 15 and fallen to a record low of 239.94 on July 28. But since July 29, it has reversed gears and its value had risen by Rs14.15 till yesterday (Aug 4).
The biggest hike was seen on Wednesday (Aug 3), when the rupee appreciated by a record single-day gain of Rs9.59 or 4.19pc.
This major gain by the rupee has brought exchange rate stability as currency dealers feel that the fluctuations would not be as volatile as were witnessed in July when the greenback gained over 13pc in a single month against the local currency.
More to follow.